April 27: Vietnam Central Bank Keeps Dollar Exchange At 20,828 dong, Banks Raise Dollar Prices

Vietnam’s central bank quoted the U.S dollar exchange rate at VND20.828 on Friday unchanged for more than 4 months, the longest string since it has been applied but also the highest one.

Commercial banks are allowed to apply effective exchange rate +-1 percent from the official exchange rate set by the central bank, accordingly, the ceiling price for a dollar today was VND21,036 but commercial banks mostly quoted dollar prices below the upper limit.

Most of commercial banks raised dollar prices today up to VND50 versus 1 USD, and the exchange rates applied ranging from VND20,830-20,850 for bid and VND20,880-20,920 for ask, respectively.

Vietnam’s foreign currency reserves rose to the equivalent 9 weeks of imports from about 7.5 weeks as of mid-2011, the local newswire NDHMoney.vn reported, citing the government’s latest report to the Standing Committee of the National Assembly.

Vietnam targets to adjust the exchange rate by between 2-3 percent this year only, if it is reached, this will be the first year dong is fairly stable after a long streak of much depreciation in the past years.

 

Category: Finance